Yes, if you have space dedicated to your bakery, that you do not use for anything else, then this would qualify as exclusive use and you would be able to take the deduction. You would also then be able to deduct part of your utilities and mortgage interest.
You cannot deduct your mortgage. However, when doing the home office/business use of property deduction, you will be able to depreciate that part of your home as part of the deduction. There are 2 methods to take a deduction for your business use of home. One is the simplified method which is $5 per square foot that you use for business. The other is actual expenses. This is where you would enter the value of your home and how much you pay for homeowners insurance and other expenses.
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